Sydney, Australia

The 2000 Olympics were a coming-of-age ceremony for SYDNEY. The impact on the city was all-embracing, with fifty years' worth of development compressed into four years under the pressure of intense international scrutiny. Transport infrastructure was greatly improved and a rash of luxury hotels and waterside apartments added themselves to the skyline. The City of Sydney Council spent $200 million to improve and beautify the city streets, public squares and parks, and licensing laws changed too, creating a European-style bar culture. Sydney now has all the vigour of a world-class city, with the reputation of its restaurants in particular turning the lingering cultural sneers to swoons. It seems to have the best of both worlds – twenty minutes from Circular Quay by bus, the high-rise office buildings and skyscrapers give way to colourful inner-city suburbs where you can get an eyeful of sky and watch the lemons ripening above the sidewalk, while to the centre's north and south are corridors of largely intact bushland where many have built their dream homes. During every heatwave, however, bushfires threaten the city, and sophisticated Sydney becomes closer to its roots than it sometimes feels. In the summer, the city's hot offices are abandoned for the remarkably unspoilt beaches strung around the eastern and northern suburbs.
It's also as beautiful a city as any in the world, with a setting that perhaps only Rio de Janeiro can rival: the water is what makes it so special, and no introduction to Sydney would be complete without paying tribute to one of the world's great harbours. Port Jackson is a sunken valley which twists inland to meet the fresh water of the Parramatta River; in the process it washes into a hundred coves and bays, winds around rocky points, flows past the small harbour islands, slips under bridges and laps at the foot of the Opera House. If Sydney is seen at its gleaming best from the deck of a harbour ferry, especially at weekends when the harbour's jagged jaws fill with a flotilla of small vessels, racing yachts and cabin cruisers, it's seen at its most varied in its lively neighbourhoods. Getting away from the city centre and exploring them is an essential part of Sydney's pleasures.
It might seem surprising that Sydney is not Australia's capital: the creation of Canberra in 1927 – intended to stem the intense rivalry between Sydney and Melbourne – has not affected the view of many Sydneysiders that their city remains the true capital of Australia, and certainly in many ways it feels like it. The city has a tangible sense of history: the old stone walls and well-worn steps in the backstreets around The Rocks are an evocative reminder that Sydney has more than two hundred years of white history behind it.